(1) Analysis of the Current Development Status of the Hotel Industry in China

　　Currently, the competitive landscape of limited-service hotels is dominated by three strong players: Jin Jiang, Shou Lv, and Huazhu, forming the first tier. The leading hotel groups in the domestic hotel industry mainly engage in the management of economy and mid-range hotels, focusing primarily on limited-service hotels. The industry scale of limited-service hotels continues to expand, but the growth rate has significantly declined since 2016. This is mainly due to the saturation of the supply side of economy hotels, leading to consolidation and a slowdown in growth from upgrades and renovations, while large hotel groups are focusing on expanding their mid-range hotel offerings.

　　Top Five Hotel Groups in China

　　(2) Forecast of Hotel Industry Development Trends

　　As the giants of the Chinese hotel industry are busy with mergers, expansions, and positioning mid-range hotels to seize the opportunities brought by consumer upgrades, the global hotel industry is also facing changes brought about by the development of the times and technology. The cooperation and competition between OTAs and hotel groups is a topic that maintains a delicate balance. The changes in the behavior and preferences of the new generation of business travelers and frequent hotel guests bring higher demands for marketing and services from hotel groups. The rise of homestays has diverted a portion of travelers eager to experience new things.

　　For Chinese hotel groups, the recovery of economy hotels has been confirmed, and the layout of mid-range hotels is also in full swing. More importantly, during this round of hotel prosperity cycle, hotel groups need to timely adjust their brand layout and the structure of existing hotels. Under the current operating situation driven mainly by average room rates, groups need to enhance RevPAR and gross profit margins through improvements in membership programs, information systems, and in-store services.

　　It is expected that economic stabilization will drive demand positively, with a strong recovery of economy hotels and steady growth of mid-range hotels, while optimization on the supply side will lead to rapid growth in the operating performance of hotel groups, with profits expected to continue to improve.